Freezing Russian oil duties may sustain Belarusian budget

The Russian government has decided to freeze export duty on crude oil. The tax manoeuvre in Russia anticipated a reduction in duties from 42% to 36%, which would lead to a rise in oil prices for Belarus. As a result, Belarus’ budget revenues will increase, financial health of the refinery will improve, so as the volume of tolling processing from Russian companies. The price of petroleum products on the domestic market in the absence of the devaluation in 2016 may remain unchanged. Additional resources raised because of the Russian Government’s decision may be used to finance government programmes and social expenditures.